August 31, 2016 | 5:38 PM by Fahad Khalid |

Unlock: Cynapsus Therapeutics (CYNA) Note to Clients on August 21

It pays to do fundamental research to position in right places and sometimes your hard work is rewarded with a buyout! Cynapsus Therapeutics (CYNA) is being acquired after hours for $40.50 per share cash by Sunovian Pharma. Stock closed at $18.36 today. Massive 120% buyout premium. We weren’t betting on buyout. We were simply betting on good data as the evidence supported. Note below was sent to clients on August 21.

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Cynapsus Therapeutics (CYNA) On Tap to Report Phase III Data – This is tiny $234 million small cap. No option history here. Chart looks decent. Highly speculative stock. Important Phase III data for efficacy expected late Q3 / early Q4 of APL-130277 drug, which is a thin-film sublingual (under the tongue) formulation for treating acute on-demand or “rescue” treatment of OFF episodes in Parkinson’s Disease (PD) patients. Basically, OFF episodes are those periods when PD symptoms re-emerge despite patient taking medication for PD. CYNA’s drug is cure for such episodes by placing thin film under the tongue. Had positive results in Phase II. On June 14 BAML conducted a survey of 50 physicians and walked away with very upbeat results with 78% of respondents willing to prescribe the drug to their patients. Summary of survey results:

1) Believe inconvenience of the method of delivery of currently-approved Apokyn pen injector is the main impediment to patient use vs. apomorphine’s side effects/first-dose titration requirement (54% vs. 20%/18%)

2) Would prefer to prescribe sublingual apomorphine vs. inhaled levodopa by a 70/30% ratio (all else equal)

Predict share of ~35% for APL-130277 vs. ~25% for inhaled levodopa.


CYNA Chart


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